Cuba to cut one million public sector jobs

Cuba's government employs about 85% of the country's 5.1 million workers

Cuba has announced radical plans to lay off huge numbers of state employees, to help revive the communist country's struggling economy.

The Cuban labour federation said more than a million workers would lose their jobs - half of them by March next year.

Those laid off will be encouraged to become self-employed or join new private enterprises, on which some of the current restrictions will be eased.

Analysts say it is the biggest private sector shift since the 1959 revolution.

Cuba's communist government currently controls almost all aspects of the country's economy and employs about 85% of the official workforce, which is put at 5.1 million people.

As many as one-in-five of all workers could lose their jobs.

"Our state cannot and should not continue maintaining companies, productive entities, services and budgeted sectors with bloated payrolls and losses that hurt the economy," the labour federation said in a statement.

"Job options will be increased and broadened with new forms of non-state employment, among them leasing land, co-operatives, and self-employment, absorbing hundreds of thousands of workers in the coming years," the statement added.

Free enterprise?

To create jobs for the redundant workers, strict rules limiting private enterprise will be relaxed and many more licenses will be issued for people to become self-employed.

Economic reform

April 2010: Cuba begins turning over hundreds of state-run barber shops and beauty salons to employees

August 2010: President Raul Castro says the role of the state is to be reduced in some areas, with more workers allowed to be self-employed or to set up small businesses

September 2010: Cuba announces radical plans to lay off huge numbers of state employees to help revive the economy